This type of investment came across my mind when I went to CIMB bank with my sister for her CIMB youth account.

Just recap what I read from Lowyat.com yesterday, many people are positive about this type of investment. Generally, this investment requires you to keep money in the bank, every month PPI RM200. Only RM50 is needed to open a account, and of course, the CIMB bank got promotion now, put in RM5,000 as deposit you can receiver 30% as the bonus unit. And if put in RM10,000 also got the promotion. (I dont know how to explain because I am still learning about this). For CIMB youth account, put in RM1,000 and every month PPI RM200 you will receive an exclusive gift (but they never mention what is the gift).

Let's assume you:

Contribute lump sum of RM100,000 as initial contribution in the 1st month.

Contribute RM500 for every subsequent month until 5 years before maturity.

CIMB InvestSave Index is provided as a reference for the underlying transaction of the Max InvestSave PSSIA-i and the Bank shall not at any time be a party to any transaction related to the trading of CIMB InvestSave Index or CIMB Evergreen Index.The dynamic investment strategy of the CIMB Evergreen Index is what allows the index (and investors) to gain potentially higher returns, even under different market conditions.

The good things here is:

1) It can be you saving account as well. Imagine you suddenly got so much money to use after 15, 20, 25 or 30 years, because you cant take the money out before it reaches maturity. It is like a gift to you after that many years. And it is good for person who cant bear to see their account had so much money and want to spend. This can help that kind of person to save. (like me)

2) The money will gain up to triple if there are bullish case. Even in the bearish case, you won't lost your money, you just get back what you invest.

The catches is:

1) What if every month you cant squeeze out RM200 to put in? It will be just a waste. Better put in bank account as you can get interest.

2) What if suddenly you need a huge amount of money, and you need to withdraw the money from the Max InverstSave account. From my understanding, in this type of investment, you need to buy some unit, and if you sell out the unit, it will according to the market price at that time. So, if you sell out the unit when the price per unit drop, you will lose your money. Furthermore, you break the maturity period, and you cant get the amount they promise to give you at the end of 15, 20, 25 or 30 years later.

3) What is CIMB invest in? What is the Ever Green Project? Do it guarantee a return?

What do you think?

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